No Backup Server? National Network Collapse.

• A fire broke out at the National Information Resources Service data center in Daejeon on the afternoon of the 26th. The blaze started during a lithium-ion battery replacement and spread to servers, causing 384 batteries to explode in succession.
• The fire was extinguished after 22 hours, but 96 government systems—including the National Law Information Center, National Petition Platform, and Safety Stepping Stone—were completely destroyed. A total of 647 government systems were shut down. This accounts for 40% of the 1,600 government services.
• Fires can happen anytime, but the issue is backup.

Government Gridlock.

• Financial institutions cannot open non-face-to-face accounts as the resident registration verification system is paralyzed.
• Post offices are in emergency mode: financial systems restored, but parcel registration and verification remain unavailable.
• Real estate transactions have halted, making property transaction reporting impossible.
• Parking enforcement must now rely on paper records instead of terminals.
• Passport issuance is also experiencing delays.
• Crematorium reservations are unavailable; inquiries must be made by phone.
• Local taxes—including property and vehicle taxes—have had their payment deadlines extended.

It Was an LG Energy Solution Battery.

• It began with sparks from an uninterruptible power supply. The device contained a 54V lithium-ion battery from LG Energy Solution. Though cheaper and with higher energy density than lead-acid batteries, they carry relatively higher fire risks and are difficult to extinguish once thermal runaway occurs.
• Two possibilities are cited: voltage may have surged when cables were disconnected while powered, or the separator may have cracked after exceeding its 10-year lifespan.
• According to The Korea Economic Daily, the equipment was installed in August 2014, meaning it had already surpassed its recommended 10-year service life.
• Related Link.

The Lesson from the 2020 Kakao Outage.

• When the Kakao data center caught fire, the Ministry of Science and ICT at the time demanded data redundancy. Yet, government services themselves lacked redundancy.
• A National Assembly Planning and Finance Committee official pointed out, “The Ministry of the Interior and Safety’s disaster recovery system, currently in a pilot phase, requires two identical servers operating simultaneously—a costlier approach—so they opted for the cheaper active-standby system first. Budget requests were postponed, and the pilot project delayed, leading to this crisis.”
• Lim Jong-in (Professor, Korea University) criticized, “Even though backups were stored in Gwangju and Daegu, there was no preparation for immediate failover when an accident occurred. We are repeating the same failure as the Kakao outage.”
• Critics argue that despite a similar administrative network paralysis two years ago, only superficial fixes were applied.
• Lee Jae-myung (President) stated, “As the head of state, I offer my sincere apologies. While urgent repairs are critical, this incident must serve as a catalyst to fundamentally overhaul the national information management system.”
• Related Link.

Even the U.S. CIA Collaborates with Amazon.

• South Korea’s outsourcing rate is less than 12%.
• U.S. federal agencies entrust over 70% to private clouds.

Will Yoon Ho-joong Be Sacked?

• In November 2023, during the administrative service shutdown crisis, Lee Jae-myung (then Democratic Party leader) demanded the dismissal of Lee Sang-min (then Minister of the Interior and Safety).
• Though the timing differs—then it was 1.5 years into the Yoon Suk-yeol administration, now just four months in—if recovery efforts remain delayed, Minister Yoon Ho-joong (Interior and Safety) may struggle to avoid accountability.

What Matters Now.

Prosecutors’ Office Abolished, KCC Becomes the Anti-American Communications Commission.

• The revised Government Organization Act passed on the 26th, followed by the Broadcasting, Media, and Communications Commission Establishment Act on the 27th, and the revised National Assembly Act on the 28th.
• The Democratic Party is pushing through one bill per day, forcing the People Power Party to end its filibuster after just 24 hours.
• The paid broadcasting duties of the Ministry of Science and ICT will transfer to the Broadcasting, Media, and Communications Commission. The number of standing commissioners will increase from five to seven, but four will remain non-standing.

The 78-Year History of the Prosecutors’ Office.

• It began in August 1945 as the Court Prosecutors’ Bureau alongside the establishment of the government. It gained independence in August 1948 with the enactment of the Prosecutors’ Office Act.
• Since 1988, when the prosecution’s term was guaranteed to prevent it from bowing to political pressure, debates over its political neutrality intensified.
• The Supreme Prosecutors’ Office’s Central Investigations Department was frequently used as a tool of the regime.
• The Hankyoreh assessed, “The prosecution has accumulated its own justification for reform, leading to its fateful abolition.”

Lee Jin-sook: “I Will File a Constitutional Appeal.”.

• Civil servants at the KCC automatically transition to the new BMCC, but political appointees are excluded.
• Lee Jin-sook (KCC Chairperson) protested, “There’s no explanation for the difference between political appointees and career officials—or why political appointees must be dismissed.”
• The Korea Daily noted, “The political gains are unclear.” “While they succeeded in removing a thorn in their side, Lee Jin-sook, criticism persists that dismantling a functional organization is excessive.” “It’s no different from just changing the signboard,” one critique adds.
• Of course, the People Power Party’s claim that this is “a broadcast takeover” is equally unconvincing.
• When Lee Jin-sook called it “a Swiss-cheese law full of loopholes,” Kim Hyun (Democratic Party lawmaker, Science and Technology Committee deputy floor leader) retorted, “Since you enjoy bread and cheese, perhaps you’d also appreciate some wine.”
• Related Link.
• Related Link.

Upheaval in the Criminal Justice System: A Transition Period.

• The abolition of the Prosecutors’ Office will take effect in September next year after a one-year preparatory period. Until then, remaining cases will be transferred to the National Investigation Bureau of the National Police Agency, local police stations, or the newly established Central Criminal Investigation Agency—but massive confusion during the process is inevitable.
• Unsolved cases exceeding three months dropped from 11,008 in 2020 to 4,426 in 2021, but surged to 18,198 last year.
• The Korea Daily observed, “Since the adjustment of investigative authority, complex case-handling procedures have eroded accountability, and side effects like case ping-pong have become severe.”

Cho Hee-dae Skips Hearing.

• Cho Hee-dae (Chief Justice of the Supreme Court) sent a statement to the National Assembly, citing it as “contrary to the constitutional intent of guaranteeing judicial independence.”
• The Democratic Party convened the hearing, alleging that the Supreme Court’s April ruling—remanding Lee Jae-myung’s (then-presidential candidate) election law case for a guilty verdict just a month before the election—was electoral interference.
• —
• *Notes on Consistency & Style:**
• 1. **Title:** Retained the concise, punchy structure (“Skips Hearing”) mirroring the original’s brevity.
• 2. **Content:**
• Preserved line breaks and itemized structure exactly as provided.
• Maintained the dry tone and implicit critique (e.g., “alleging… electoral interference” reflects the Democratic Party’s framing without editorial embellishment).
• Consistent title formatting: *Cho Hee-dae (Chief Justice of the Supreme Court)*, *Lee Jae-myung (then-presidential candidate)*.
• Retained the constitutional reference’s bureaucratic phrasing (“constitutional intent of guaranteeing judicial independence”).
• No bullet points or rephrasing of rhetorical implications (e.g., the timing of the ruling as a potential political act).
• 3. **Contextual Alignment:**
• Matches previous translations’ handling of political titles (e.g., *Lee Jae-myung* as a recurring figure).
• Reflects the document’s theme of institutional conflict (judiciary vs. legislature) seen in Sections 8–10.

Deep Dive.

Drug Investigation Pressure Case: Is the Probe Being Handled Properly?

• Baek Hae-ryong (former head of the criminal investigation division at Yeongdeungpo Police Station), who was investigating the drug investigation pressure case under the Yoon Suk-yeol administration, has been demoted to the position of Hwagok District Station chief at Gangseo Police Station in Seoul.
• At a National Assembly hearing, the case was described as “an unprecedentedly massive case in South Korea’s judicial history.” Baek Hae-ryong outlined the case as follows:
• In October 2023, Yeongdeungpo Police Station arrested a Malaysian drug trafficking organization, but Kim Chan-su (then chief of Yeongdeungpo Police Station) called to say, “They know about it in Yongsan, so it’s being reported seriously.”
• Despite the arrested members confessing to smuggling and customs officials being implicated, the investigation was halted after the case was transferred to Incheon District Prosecutors’ Office.
• Baek Hae-ryong claimed, “Circumstantial evidence was confirmed that customs officials allowed the Malaysian suspects to pass through.”
• “The moment we confirmed that they passed through a restricted lane, the investigation was suspended. Reports were sent to Shim Woo-jung (then head of Incheon District Prosecutors’ Office) and the Supreme Prosecutors’ Office’s control tower. Four customs officials were identified, and the involvement expanded organizationally to section chiefs, the commissioner, and the public relations office. Incheon District Prosecutors’ Office did not even properly track CCTV footage.”
• Kim Seong-tak (JoongAng Ilbo columnist) pointed out, “To reduce confusion, Lim Eun-jung (Seoul Eastern District Prosecutors’ Office chief) must produce responsible investigation results.” Lim is in charge of overseeing the case, but Baek Hae-ryong claims, “Officials who suppressed the case and were promoted are participating in the investigation headquarters.”
• Related Link.

No $3.5 Billion Concession? Next: 100% Tariffs on Pharmaceuticals.

• Starting October 1, pharmaceuticals exported from South Korea to the U.S. will face 100% tariffs—a doubling of export costs.
• Japan and the EU, meanwhile, enjoy a 15% rate, while South Korea remains excluded from most-favored-nation treatment.
• Hur Yoon (Sogang University professor) noted, “Any U.S. concession to South Korea could provoke backlash from Japan, which has already finalized its agreement, and inevitably influence negotiations with Taiwan—making concessions unlikely.”
• Related Link.

“If the U.S. Disapproves, We Can’t Do Anything—That’s the Mindset Around the President.”.

• Jeong Se-hyun (former Unification Minister) made the remark while calling for a “change in the foreign policy and security lines.”
• Woo Sung-won (Director of the Presidential National Security Office) stated, “A $350 billion upfront investment is not feasible.” He explained, “Realistically, it’s beyond our capacity, so we’re continuing discussions.”

END Framework: Unification Ministry’s Blueprint.

• The framework outlines engagement, relations, denuclearization, and a three-stage process. Wi Sung-lak stated, “The Unification Ministry submitted a proposal, which we slightly revised.”
• Wi Sung-lak maintains “there is no hierarchy or priority in the END framework,” but Chung Dong-young (Unification Minister) insists, “Engagement must come first.”
• Chosun Ilbo and others amplify the conflict between Chung Dong-young and Wi Sung-lak as a clash between engagement-first and alliance-first factions.
• A presidential office official remarked, “We cannot abruptly shift to denuclearization without normalizing relations.”

Another Take.

Full Case Referral and Supplemental Investigation Authority at Stake.

• These are the two final demands from a weakened prosecution.
• First, full case referral requires all cases received by the police to be handed over to prosecutors.
• Before the 2021 adjustment of investigative powers between prosecutors and police, all cases were transferred. After the adjustment, cases could be retained by police if deemed non-criminal. Prosecutors argue that with police monopolizing investigative authority, a minimal check is needed—and insist full case referral must be reinstated.
• Second, supplemental investigation authority demands the ability to return cases if police work is deemed inadequate.
• Without this, prosecutors argue that if police bury or mishandle cases, maintaining indictments could become difficult. Retaining supplemental authority, however, risks a back-and-forth ping-pong between prosecutors and police over cases.
• Related Link.

No Merger for Next Year’s Local Elections: Cho Kuk’s Party and the Democratic Party.

• “This crisis cannot be resolved through a merger.”
• These are the words of Cho Kuk (Emergency Response Committee Chairperson of the Cho Kuk Innovation Party). He declared that the party will field independent candidates in all 1,256 electoral districts. The plan is to compete with the Democratic Party in the Honam region and form alliances elsewhere.
• In an interview with Dong-A Ilbo, he stated, “I haven’t made any judgment at all about whether to run for Seoul mayor or mayor of my hometown, Busan.”

Han River Bus Service Halts After Ten Days.

• Suspended for one month starting today. The term “Osedon” (a portmanteau of Oh Se-hoon and Poseidon) resurfaces. Since his first term, he has passionately pushed for Han River development, yet nothing seems to work.
• The Han River Bus, launched on the 18th, faced repeated breakdowns and operational disruptions, prompting belated system checks. For now, it will run empty as a trial. Only four of the eight built vessels are in service.

Bank of Korea Unlikely to Cut Rates.

• Three-year treasury bond yields have surged, surpassing the base rate.
• This reflects expectations that the Bank of Korea will not lower interest rates.
• The wild card is real estate. Lee Chang-yong (Bank of Korea Governor) and others maintain that cutting the base rate will be difficult until the pace of real estate price increases slows.

Over 51 Days for Coupang Payments in 34% of Cases.

• Naver, Gmarket, and 11th Street range from 0–7%.
• A survey by the Korea Federation of SMEs found some vendors spend 41% of revenue on Coupang ads and fees.

The Fix.

Carbon-Belching Hippos: Four Challenges for the Steel Industry.

• POSCO is South Korea’s largest carbon emitter, accounting for 10% of the nation’s total emissions. The steel industry as a whole contributes around 15%. This is why experts argue that Korea’s carbon neutrality is impossible without transforming POSCO—the carbon-belching hippo.
• The K-Steel Act, jointly proposed by Lee Sang-hwi (People Power Party lawmaker) and Eo Gyeo-gu (Democratic Party lawmaker), aims to support the steel industry’s transition to decarbonization. With 106 lawmakers from both ruling and opposition parties participating, its passage in the plenary session is highly likely.
• POSCO faces a triple crisis: shrinking domestic demand, low-cost steel imports from China, and U.S. tariff bombs. As global carbon regulations tighten and tariffs are increasingly imposed based on emissions, transitioning to carbon neutrality is urgent for industrial competitiveness. POSCO estimates it will require 40 trillion won by 2050 for this transition.
• Global demand for low-carbon steel is projected to surge from 15 million tons in 2021 to 200 million tons by 2030. While the Korean government has pledged 308.8 billion won for hydrogen-reduction pilot projects, Japan, Germany, and the Netherlands have already invested trillions of won in similar initiatives.
• The K-Steel Act addresses four key areas:
• First, strengthen the steel industry’s competitiveness and drive carbon neutrality.
• Second, support low-carbon steel technology development, including tax reductions and financial incentives.
• Third, create demand through government priority purchasing.
• The scale of government support remains undecided. Climate Solutions estimates that sourcing all green hydrogen for steel production domestically could reduce production costs by nearly 40% by 2050.
• Two critical questions arise:
• First, is it necessary to use taxpayer money to support specific industries and companies?
• Second, will government support actually enhance competitiveness?
• Jang Eun-hye (head of the Climate Change and ESG Legislation Team at the Korea Legislation Research Institute) emphasized four points at a parliamentary seminar on the 23rd:
• First, carbon neutrality is a societal challenge.
• Second, carbon neutrality loses meaning if the steel industry loses global competitiveness.
• Third, focusing solely on industrial competitiveness while ignoring the environment has no future.
• Fourth, it’s time for a strategy that achieves carbon neutrality while growing the industry.
• “This is an era where environmental policies must consider industry, and industrial policies must address carbon neutrality,” she said. A balanced approach of incentives and regulations is needed—government support for carbon neutrality must be paired with strict emissions controls.
• Kang Hye-bin (Climate Solutions researcher) criticized the lack of “clear short-term reduction targets or strategies,” stressing that “the purpose, scope, and criteria for support must be explicitly defined.”
• Japan has set a 30% emissions reduction target for its steel sector by 2030, while the EU plans annual reductions in total emissions allowances. The U.S. has introduced the Modern Steel Act to support carbon-neutral steel.
• Critics also note that the government’s definitions of “green steel” and “core strategic technologies” remain vague. The EU selects support recipients based on reduction potential, and Japan funds only proven technologies.
• Lee Joon-kyu (leader of POSCO Holdings’ Future Technology Research Institute) urged, “This should not be seen as support for a single conglomerate but as a national strategy to drive carbon transition in key industries and reshape the broader economy.”
• Related Link.

ICYMI.

67% of Pedestrian Traffic Fatalities Are Elderly.

• Last year, 346 elderly people died in traffic accidents while crossing the street.
• 159 of these fatalities occurred at crosswalks. 187 cases involved jaywalking.
• Cho Eun-kyung (Senior Researcher, Korea Transportation Safety Authority) explained, “Elderly pedestrians often attempt to cross when the distance to oncoming vehicles is short, despite their slower walking speed. Their declining cognitive abilities also delay situational judgment.”
• Related Link.

Will KakaoTalk Change Again?

• One-star reviews are flooding the App Store. The Google Play Store average rating dropped from over 4.0 to 2.8 after the redesign.
• The 23rd update replaced the Friends tab with an Instagram-style layout. Complaints erupted as profile changes from non-close contacts now appear in a feed, unintentionally exposing strangers’ private lives.
• The short-form video tab has also drawn criticism. Parents limiting social media for minors now face these features embedded directly in KakaoTalk.
• A Kakao representative stated, “We will soon share improvements for the most criticized Friends tab.”
• Related Link.

Worth Reading.

What Seoul’s 0.58 Total Fertility Rate Reveals.

• Can birth rates rise without solving pressures from education and childcare?
• Seok Jae-eun (Professor, Hallym University) identified three structural issues.
• First, private education costs nearly 30 trillion won last year. This pushes families toward either abandoning childbirth or hyper-investing in a single child, making second births a luxury for high-income households.
• Second, the gender wage gap imposes high opportunity costs on women.
• Third, as young people flock to the capital region, housing and time costs soar while local areas spiral into a vicious cycle of poor childcare, healthcare, and cultural accessibility.
• The solutions are fivefold.
• First, change the rules of the competitive game—strengthening public education is key.
• Second, childcare and caregiving support must be in place before families consider having children.
• Third, expand paternity leave.
• Fourth, distribute residential infrastructure and quality jobs to regional areas.
• Fifth, redefine the goal. “Beyond total fertility rates, policies should be designed and evaluated based on conditions for raising children: housing burdens, time poverty, childcare accessibility, workplace culture, and regional livability,” she argues.
• Related Link.

“The Korea-US Summit Should Be Held at Hyundai Heavy Industries in Ulsan.”.

• The US spends 5 trillion won to build one ship. South Korea can build one for 2 trillion won.
• Kim Tae-sun (Democratic Party lawmaker) argued, “Trump should be invited to Hyundai Heavy Industries in Ulsan during his APEC visit for a summit.” This is because the MASGA (Make American Shipbuilding Great Again) project should serve not only the US but also as a foothold for reviving Korean manufacturing.
• The issue of migrant workers must also be addressed. Vietnamese migrant workers pay brokers between 10 million and 15 million won. The Yoon Suk-yeol government lowered the threshold for E-7 visas to increase migrant workers, and they arrived en masse without proper preparation.
• Kim Tae-sun pointed out, “By hiring migrant workers at minimum wage for immediate profit, the employment conditions of domestic workers are being standardized downward.”
• Related Link.

After the Tariff War, Currency and Exchange Rate Battles Loom.

• Washington is likely to demand exchange rate adjustments. Exports could shrink and growth rates slow.
• If dollar-backed stablecoins proliferate, exchange rates could spike.
• Kim Jung-sik (Yonsei University professor) warned, “Some predict a 10% drop in exports to the US if negotiations collapse and additional tariffs are imposed—but if talks drag on or fail, South Korea could face enormous costs.”
• Park Hyung-jung (Woori Bank economist) analyzed, “Even if a currency swap is signed, it won’t eliminate dollar outflow pressures and has limits in fundamentally stabilizing exchange rates.”
• Related Link.
• Related Link.

It Should Not End with Purges.

• Hwang Joon-beom (Hankyoreh columnist) pointed out, “It’s time for the ruling party to reflect on its strategy and attitude.” The story is that the harsh rhetoric and mockery from Rep. Jeong Cheong-rae (Democratic Party leader) and some lawmakers are causing fatigue.
• Hwang Joon-beom warned, “The moral imperative of purging internal rebellion does not grant the ruling party unlimited license to act, and excessive measures could even harm the president.”
• This is because the Lee Jae-myung administration has many tasks ahead, and the ‘soda politics’ appealing to hardline supporters has its limits.
• “Beyond purges and reforms, the ruling party must become a ‘multi-tasking’ force addressing livelihoods, security, and other challenges. It should be a ruling party that wields swords from horseback but also dismounts to converse with people and till the fields.”
• Related Link.

Judicial Reform Should Be the Most Depoliticized Debate.

• Because a politicized judiciary is ultimately a result of political failure.
• Kim Geon-woo (Participatory Democracy Policy Planning Team Coordinator) pointed out, “We cannot know whether a judiciary that has succumbed to all-around pressure will once again ‘pledge loyalty’ to someone.”
• “Watching the Democratic Party browbeat the judiciary, we cannot tell whether their aim is overcoming insurrection and reform, revenge driven by resentment, or political engineering for ulterior motives.”
• The argument is that we must look further ahead and move beyond the framework of ‘ending insurrection’ vs. ‘defending insurrection.’
• Related Link.